You’ve just graduated college. Congratulations! That’s a big deal. All throughout your years in college, you were focused on accepting a job offer and having a position lined up before you graduated. You wanted to save yourself the worry and stress that came with job hunting post-college. With this goal in mind, it did happen, and you had a job lined up a month or two after you walked across the stage and accepted your diploma. That’s a huge success for someone of your age.
With a job often comes benefits, and those include a 401K or other retirement plan. Chances are if you were so set on finding a job right out of college, you are also already thinking about retirement planning and saving money for the later years in your life. However, this unfortunately isn’t always the case with everyone. Even with a full-time job that offers benefits, many young people fail to begin saving for retirement, let alone try to understand the immense benefits of retirement planning at a young age.
Perhaps you’re in your early 20s and have a stable, full-time position, but aren’t sure if you want to open up a retirement savings account through your company. If this is the case, you’re going to want to continue reading this blog. If starting your retirement plan isn’t at the forefront of your mind when you accept a job, then you may have questions about when you should be thinking about opening up at 401K or some form of retirement savings account.
To find the answer and to learn so much more, continue reading this blog. Contact Kennedy Wealth Management if you have any further questions.
At What Age Should I Start Thinking About Retirement Planning?
The answer to the impending question: “When should I start saving for retirement?” is easy. The answer is now. It is highly recommended that you begin setting aside money for your retirement years as soon as you begin working in the professional field. For many young individuals, that means the first job you get out of college, whether you’re age 21 or 26. That is why companies offer a 401K plan to their employees, no matter their age.
While different professions and life experiences set us all apart, one thing binds us together, and that is our desire to live a financially stable and flexible life. If someone offered you a million dollars, would you take it? Undoubtedly so. It’s time to consider your 401K account as your path to financial success. While you may not be seeing that money right now and you’ll have to wait years to have access to it, you’ll have squirreled away quite a bit of money that has compounded over the decades, allowing you the flexibility and financial stability that you’ve already desired.
But you have to realize that the catalyst for this is time. If you have a financial goal that you want to reach by your retirement years, you’ll need to understand that the secret to success is time and diligence. The earlier you start saving for retirement, the more you’re going to benefit financially when you hit retirement. And especially so if your employer offers a matching contribution for your 401K. That means that the earlier you start saving, the more your money will begin to accumulate. Each year, the value of the U.S. dollar increases due to inflation, so the one dollar that you invest today might be worth five or six dollars in the future. If you choose to start saving now, in your early twenties, you won’t have to set aside as much to have more spending money during retirement.
Start Saving Now
There’s no doubt that the earlier you start saving, the more money you’ll have to spend during retirement. That’s why it’s essential to take advantage of any 401K plans that your employer offers, and especially so if your employer offers you a matching contribution plan. Setting aside a small amount each month, between one and three percent, can provide you with the flexibility and stability that you’ll want to enjoy financially during your retirement years.
Don’t let your young age keep you away from planning for your future. Contact a retirement planning professional at Kennedy Wealth Management to learn more about how you can be proactive with your finances now.